Why Klaviyo, Inc. (KVYO) Is Among the Undervalued Software Stocks to Buy Now

Klaviyo, Inc. (NYSE:KVYO) is among the undervalued software stocks to buy now. On June 24, Callie Valenti from Goldman Sachs assumed coverage of Klaviyo, Inc. (NYSE:KVYO) with a price target of $26, implying approximately 54% upside. In a research note, the analyst highlighted the stock’s 30% decline following Q1 earnings. This was mainly due to the planned CFO departure and factors that added uncertainty around sequential and year-on-year trends, the analyst added.

The firm’s Buy rating is driven by Klaviyo, Inc. (NYSE:KVYO)’s exposure to a range of growth drivers, reinforcing a strong underlying business. This is supported by the company’s revenue growth, which remains at a high 20% pace, Valenti said.

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Despite the negative returns, Klaviyo, Inc. (NYSE:KVYO) is a consensus Buy. The stock has 77.41% upside potential at the 1-year median price target of $30. With a forward P/E of 20.66 and quarterly revenue growth (yoy) of 27.90%, KVYO is one of the undervalued software stocks to buy now.

Klaviyo, Inc. (NYSE:KVYO) is a Massachusetts-based cloud-based SaaS platform offering CRM, Klaviyo Data Platform, Advanced KDP, and Marketing Agent, among others. Incorporated in 2012, the company mainly serves entrepreneurs, SMEs, and other enterprises.

While we acknowledge the risk and potential of KVYO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KVYO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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